Whenever you need an urgent fund the question arrives in mind that from where you will get the money? but now you don’t have to worry about it now, as a personal loan is there for you. you can get this without any collateral in this interest rates are high but if you have a good interest rate you can get it at an affordable rate
How Personal Loan works
- borrow a fixed sum and repay it with monthly installments.
- loan tenure isn’t that long it generally ranges 12 to 84 months.
- Once you’ve repaid your loan sum, you’ll be able to apply for a new loan but this is recommendable first clear your previous loans and then goes for a new loan.
- Unsecured Loan: In this, there is no need of keeping any collateral, the bank will check your income proof and credit history. If your profile matches the eligibility criteria, you can apply for a personal loan.
- Secured Loan: In this loan, if you will unable to repay the loan at a given time bank will take away your assets. The interest rates on a secured personal loan are comparatively lower than the unsecured type of personal loan.
Personal loan Interest rates and other fees
- Interest rates: Interest rates generally range from approx. 5% to 36% depending on the bank and your credit history. This is recommendable don’t extend your tenure much otherwise you have to pay more interest.
- Origination fees: Some banks and lenders charge a fee so they can cover their loan’s processing cost. The fee generally ranges from one to six percent of the loan sum.
- Prepayment penalties: If you pay off your loan before fixed tenure then some lenders charge a fee because early repayment means the lenders are passing up a major opportunity for a portion of the interest that they would have generally earned.
To know more about personal loans without wasting any time, visit DialaBank.
Major Personal Loan Providing Institutions:
Read Other Related Articles:
|Duplicate PAN Numbers|
|Convincing the Investors for a New Startup|
|Use Personal Loan to Repay Debts||Know Your Personal Loan|